Question: Assuming that the current rate on one-year bond be 7%, You expect the interest rate on a one-year bond to be 9% next year. And

Assuming that the current rate on one-year bond be 7%, You expect the interest rate on a one-year bond to be 9% next year. And the liquidity premium for that bond is 1.1%. Then the expected return for buying two one-year bonds is Select one: O a. 10.1% O b. 8.1% O G 7.1% O d. 9.196

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